If the nominal interest rate falls, everything else remaining unchanged, ________
A) the real interest rate will rise B) the inflation rate will decrease
C) the real interest rate will remain unchanged D) the real interest rate will fall
D
You might also like to view...
Shifts in the long-run aggregate supply curve are caused by:
What will be an ideal response?
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Which of the following is NOT a type of incentive?
What will be an ideal response?
Imagine a central banker who takes office believing that, ultimately, the best way to stimulate an economy is to keep people guessing. This means the policy maker will often, but not always, announce one change but then actually do something else. What do you think of the central bank's chances for achieving its objectives and why?
What will be an ideal response?